The government has announced plans to tighten the rules around unpaid internships in a bid to prevent employers from exploiting young people. Under the proposals, businesses could soon be banned from offering unpaid internships that go beyond work shadowing or volunteering unless they’re part of a formal education or training programme.
Accountancy and finance firms are among the biggest users of internships, with 72% offering placements in 2024, up from 64% in 2018. The sector ranks fourth behind real estate, IT and construction. While most unpaid internships are already unlawful if they involve actual work, enforcement remains weak and many employers continue to sidestep the rules. A key issue is that the term “intern” has no legal definition.
To shape future policy, the government is calling for evidence from employers. It wants data on the number and type of internships offered, whether interns are paid, the use of non-wage benefits like travel or meals, and how long placements typically last. It’s also reviewing practices such as unpaid work trials and shadowing.
The review will assess the impact a full ban might have on organisations, especially those relying on unpaid roles as part of candidate screening. Any legal changes are expected to come into force no earlier than 2026, with a formal government response due by February that year.
Employment rights minister Justin Madders said internships should help young people develop skills and careers – not use them as unpaid workers.
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